How does the trend of consuming only on terraces affect the beer sector?
The coronavirus pandemic has brought about multiple changes in the beer and hospitality sectors, in how we relate to beer. Among them, it has shifted consumption to outdoor areas. If customers used to be split between indoors and the terrace, current circumstances encourage them to enjoy their beer under an awning or umbrella. Not even air conditioning is enough of an argument anymore.
This has a direct impact on the turnover of bars and restaurants. Those with good terraces will still be able to cope better with the “new normal”. However, venues that can only offer a couple of tables or that don’t have a terrace license are going to lose a lot of revenue; even more so with all the new outbreaks that keep emerging and further undermine customer confidence every day. These establishments have had to reinvent themselves to survive, turning towards e-commerce and off-premise consumption.
Some of these craft beer bars have chosen to join the sale of “growlers”. In other words, filling containers with beer from the tap so that customers can drink it at home over the next few days or wherever they like. It’s a phenomenon similar to fresh milk or other products that must be consumed quickly. The sale of “growlers” already took off during lockdown. In fact, some businesses accepted orders via WhatsApp for both pickup and home delivery.
At the same time, many bars have chosen to take on a secondary role as bottle shops. They have increased their range of cans and bottles to go. Some bars have bought fridges where you can see two prices: one for on-site consumption and a lower one for those who choose to stock up their pantry. As with “growlers”, bars have opened online sales and home-delivery channels for their customers.
On the producers’ and distributors’ side, many have opted for direct‑to‑consumer sales. Coronavirus has driven the creation of e‑commerce platforms integrated into the various brands’ websites. Although most links in the chain have chosen to take on the role of retailer, it is worth asking how this unexpected competition has affected shops and distributors that were already specialized in beer. Several have closed or are in serious financial trouble.
In Spain, there is no clear law preventing companies from skipping links in the chain that runs from manufacturer to end consumer. This has been the salvation of some businesses and the reason others have closed, like the saying “a feast today, famine tomorrow.” We’ll see how the hospitality industry adapts to the “new normal” and whether this experience leads to regulation of the value chain.
